Crop Insurance and Disaster Assistance

Reform (FAIR) Act implemented farm program contract payments that do not increase as agricultural prices fall, shifting farm policy toward a greater emphasis on risk management and, in particular, on crop insurance. This shift has resulted in the introduction of new types of insurance policies; especially those that provide both yield and price protection. Several new and innovative crop policies were initiated immediately after the 1996 Act, and new policies including whole-farm, livestock, and other types of insurance continue to be proposed for government subsidization and reinsurance. In addition to the introduction of new products, the list of crops for which insurance is available has grown from approximately 50 in the early 1990s to more than 100 in 2000. Crops currently covered by federally-subsidized insurance include not only major field crops, but also many types of fruits, vegetables, nuts, certain specialty crop trees, nursery stock, and rangeland. In some areas, guarantee levels as high as 85 percent of normal yield or revenue are being offered for selected crops. Crop Insurance and Disaster Assistance